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Massachusetts –
A (Common) Wealth
of Opportunity
Home to the world’s most prominent universities and brilliant minds, it’s no surprise
that Massachusetts has morphed into a 21st century innovation hub. Buoyed by new
technology, several industries are growing rapidly. Life sciences, tech start-ups, and
cleantech are three areas where market opportunities continue to expand.
Life Sciences
Life sciences, which include medical devices, biotechnology, and pharmaceuticals, are
a longstanding strength for Massachusetts. The state’s renowned academic medical
centers and research labs catalyze life-saving breakthroughs. With the discovery
of new treatments, investments have flowed in to support early stage companies.
In the last two quarters of 2015, Boston based biotechnology and medical device
companies raised over US$1.2 billion in venture capital funding. As seen below, for Q3
2015 Boston was first nationally.
The entrepreneurial environment helps
Massachusetts
attract
well-established
industry leaders. Last year, GE Healthcare,
Shire,andPhilips announcedplans toestablish
headquarters in the state, while Eli Lily,
Baxter International, and Amgen expanded
their Massachusetts operations. In all, 2015
saw 20 large life sciences companies grow
their Massachusetts presence, bringing jobs,
economic development, and opportunities
for strategic alliances.
Technology Focused Start-ups
Beyond life sciences, Massachusetts continues to top the list of destinations for
tech start-ups. Investment in Massachusetts’ early stage technology companies
has boomed since 2011, with 194% investment growth over the last four years. This
culminated in a record breaking 2015 for the state, with US$7.4 billion in venture
capital funding invested across 531 deals. Massachusetts ranked second behind only
California in total venture capital funding for the last half of 2015. The year’s biggest
transactions were in cybersecurity, as three companies raised over US$50 million. Real
estate software, internet of things technology, and e-commerce were also active.
This trend looks primed to continue as Massachusetts placed second in total venture
capital funding during Q1 2016.
Top Five Metropolitan
Regions, Q3 2015
Source: PwC MoneyTree Report